Dynamics of cocoon prices and business performance of silk reeling units in Karnataka

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UASD
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Sericulture is a vital income and employment generating activity particularly to the most economically weaker sections of the society. Silk reeling is a main link in sericulture industry having backward linkage with mulberry and cocoon production. Hence the present study was takenup to analyse the dynamics of cocoon prices and arrivals as well as the performance of different types of reeling units. Major cocoon markets, namely Ramanagar, Sidlaghatta and Kollegal were selected for the purpose. The results revealed an increasing trend in both arrivals and prices of silk cocoon over the years. Higher seasonal indices of cocoon prices were observed during January, April and December, which were associated with lower indices for arrivals. There were no constant periods between the cycles in both arrivals and prices in the selected markets. With respect to cost and returns higher cost of cocoon processing was observed in the cost of multi-end basin followed by cottage basin and charaka units respectively. However, it was observed from the analysis that the quality of silk produced in all the three systems of reeling varied significantly. The quality of raw silk produced by multi-end basin was further as compared to other methods of reeling which fetched higher since in the silk exchange. The package for introduction of silk reeling in non-conventional sericulture areas suffers from non availability of good quality cocoons, fluctuation in cocoon prices and fluctuation in raw silk prices. This package should be reviewed and re-designed to enable this area to function more efficiently.
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